First Rental Property....But What Type?

[Nick Thomas]

Hello BP, as I am looking at different options for investment I was hoping to get some opinions from the community about what type of rental property is the best investment. I realize factors will play a part in one deal being better than another, but I just wanted to hear personal preferences and why. The types I have thought of are Vacation Rentals, College Rentals, Family Rentals, and Bachelor Pad Rentals. Which type would you prefer for a first cash flow property and why? Thanks.

P.S. What would you say is a good goal for yearly cash flow on your first property and what factors play a part in making or breaking that goal?

[Tim Schroeder]

@Julie McCoy What she said.

You can also boil it down to this: LTR=Less work, Less profit. STR=More work, more profit. What are your goals? If your goal is a bit of extra cash on the side and (hopefully) some long-term appreciation while you get on with your life then go LTR. If your goal is like me, to eventually quit my cubicle job and do this full time and make a living out of it, then high-return, high-effort is the way to go.